For every single good idea in the world of business, there are ten or more bad ones waiting. Ideas in business are a minefield and every decision needs to be analyzed and consulted on multiple occasions to ensure that the decision is the best course of action for the business and its stakeholders. It isn't just ideas where we can find negatives though - there are plenty of ways to ruin a business, including a lack of ideas and other things… Here are just a few ways you can wreck your business dream, avoid them!
Bad Financing
If you don't have a mind for finance, hire an accountant who does because you could not only drive your business into the ground - you might also be committing a felony if you aren't sorting your tax out among other things, so educate yourself on finances with the resources here. There are plenty of other ways that you and your business can mess up with money - for instance, do you know of the story of Faust? The classic 'deal with the devil'. Many businesses sign deals with 'vulture funds' to gain short-term money, but the terms and conditions could cripple the business. Vulture funds gain control of businesses through minority stakes that become a majority upon a default of a loan, before asset stripping a business. If you need investment, be careful of the terms of any loan. If you can't find ways of organically financing your business that are healthy, avoid it altogether.
Overhiring
Every business has gaps to fill, but hiring one person for each job can lead to disaster. What happens if these gaps close organically and naturally? What happens if the gap is no longer needed to be filled? When businesses hire employees on long term contracts and don't manage their human resources correctly, they can end up with a payroll that is crippling. Never hire on a whim, hire only when you can afford to do so and when you need to. Overstaffing your business is a great way to sink the ship here, so be careful. Consider contractors and freelance agents who will no longer be paid once they have completed tasks. If you overstaff your business, you will force your business into making some seriously difficult decisions - namely hiring and firing.
Bad Morale
If your team are upset and deprived of happiness in the workplace, there is no way that the team will be productive. Employees at their best aren't able to give 100 percent, so what are you getting from unhappy employees? 10 percent? It is possible. Speak to your team like individuals and do your all to ensure they are happy - this can be the thing that truly makes or breaks your business as unhappy employees won't meet their goals and if you take action (as you should) against employees who aren't meeting targets, you might trap your business into a cycle of bad morale for a long time. It all comes down to your methods.
